Domain registrar Go Daddy rolled out a new product this week providing businesses incorporation services for both corporations and LLC’s.in all 50 states
Like many online incorporation sites, Godaddy asks some basic questions, and then files the necessary paperwork on behalf of the applicant and send the the filed incorporation documents to the applicant within a few weeks.
Bob Parsons, Go Daddy CEO and founder. “Go Daddy wanted to help make the whole incorporation process affordable and painless, which is why we’re offering Incorporation Services.”
“”When the incorporation services is combined with Go Daddy’s domain name registration services, WebSite Tonight and Quick Shopping Cart, customers can launch a legitimate business without having to hire a lawyer””
Incorporation Services is offered in two levels. The Economy plan is $99, plus state fees, and includes everything that is needed to incorporate a business.
The Deluxe plan is $279, plus state fees, and includes a Federal Employer Identification Number, an additional six Months of Registered Agent Service, and expedited shipping.
This seems like a natural product for Godaddy to offer.
One of the biggest knocks I have on the online registration services is that there is not enough emphasis placed on discussion of the Sub S election for small business that can save a huge amount of taxes.
Even the deluxe package doesn’t provide the applicantant a subchapter S election form along with the paperwork. A subchapter S election must be filed within 75 days of incorporation or be subject to taxation for that year as a regular “C” corporation costing thousands or hundreds of thousand of extra taxes.
I have used GoDaddy for years for other services and I just recently saw this as well. I am getting closer to registering my LLC and had already made up my mind to go with Legal Zoom. But from a quick glance a few days ago it seems GoDaddy is a little cheaper.
Seems like a good fit for a one stop shop to get your company domain, hosting, website development and your corporation all in one spot.
I have been looking into starting a U.S. based company beginning of 2010 . I see most domainers going for a LLC . I was recomended to go INC. So what’s best? Also I was told to get based in Nevada because of lower taxes.
I run my company in Europe and laws are totaly different here. Maybe someone could give me a answer what to go with LLC or INC.
Mike , I sure would need some info on this. With your background I am sure you could give some tips. You have my email and I would defenantly need to talk to a pro in the domain business.
Who ever can answer please do.
MyCorporation is also recommended with regards to their service. And the processing still FREE, you don’t have to pay the economy or deluxe plan fees.
Hope this help.
EM
Just to be clear I’m not recommending this service, just letting people know that Godaddy is now offering it
Duane
Your comment serves as a great example why I don’t like these services
There are many factors to consider which these services cannot answer for you and for which you should seek legal advice.
As always, I can point out issues and problems but I cannot render legal advice.
If I understand MHB’s original post correctly, GoDaddy includes 6 months/1 year of Registered Agent service, which can be a significant part of the cost of incorporating if you are not going to live in the state where you set up your business. Before moving to Baja Sur, Mexico, I looked into incorporating a Nevada LLC and the first year’s expenses were going to be nearly $1,000! GoDaddy’s fees seem like a steal to me. FYI, the “plus state fees” in Nevada will run you another $75.
Oops! GoDaddy says the Nevada state fees are $232
Duane,
Your decision is too important; being based as it to a large degree on a persons/ entity’s individual situation /physical/ biz location for you to make a call based on any public comments by others.
You really need to hire an attorney in your country; and maybe one in the US as well to help you decide.
After all the horror stories I’ve seen regarding all the things GoDaddy can and will do to customers and their domain names, they would be the last people I would ever trust to have anything to do with my company formation – let alone actually be entrusted as the Registered Agent!
@Mike and all others thanks for the info.
I have a U.S. lawyer working on it at the momment, just that most have no idea of this business. That’s why I put this issue out here in the ” Lions Cave” :-)).
The expenses i have seen and which have been pointed out so far, are near to nothing compared to here in Europe.
My company based in Germany is a german “GmbH” ( simular to a U.S. corp.)
To file for a ” GmbH” here, you have to CASH deposit 25000.00 Euro ( $ 37500.00) just for security which shows you are liquid as a company. This is without any legal fees or what ever. The first year expenses runs aprox. another 2000.00 Euro ( $ 3000.00) .
This was just to give all a insight how good you are off in the U. S.
Once again thanks for the info’s.
This will not effect me much being in the UK but as a long time customer of Go Daddy I am very happy to see then continue to add products to their range. Maybe one day they will expand and offer a Limited company formation service for UK clients.
Please wait until I catch my breath before I make my comment… whew… okay… thx
Here goes: I agree with Cartoonz’ comment here on Godaddy. Now, I expect lambs will be frolicking with lions, and Glenn Beck will reveal he drives a Volvo and smokes the doobage.
There’s a lot more to incorporating than filing initial papers. I used to be incorporated (as a professional corporation). My experience was that it was just another set of papers and a different set of tax forms. I never bothered anyone and nobody bothered me.
BUT if I had done anything wrong and had been sued or squeezed by my state or the feds I would have been someone’s lunch. There really are a lot of things one must do as a corporation to really be a corporation, not just a person filing a different tax return. The moment an aggressive lawyer on the other side of a dispute wants to pierce your corporate veil you’re dead.
Simply filing papers and calling yourself a corporation only works if no one challenges you.
Consult a proper legal representative, do you own due diligence.
Hi,
I was running a web design company in Bangalore, India before I started working in Dubai as a webmaster.
I am developing a number of websites and become a domainer. I would like to register a company in US for my business, which don’t need any physical presence. I will be getting the development from India through my network of people.
I will be very happy to get some guidance. If anyone interested in a joint venture, you are welcome.
Regards
Rafi
“an additional six Months of Registered Agent Service”
They are offering registered agent service in six month increments?
Ummm…. that’s a service needed for the life of the corporation. Every Delaware corporation, for example, must have an occupied street address to receive service of process and to receive the annual fee statement.
There’s something very odd about “six months” of that since, barring any legal activity, the agent has to be there to receive, forward, and return the fee statement every year.
John
I assume before the 6 months is up they will send a bill of an undetermined amount to continue to serve.
Initially, it sounds great to use a corporation mill to create your corporation. However, one of the purposes of forming a corporation is to protect the owner(s) from financial exposure.
But, do you want to have your entire financial resources at the mercy of someone at Godaddy (or the outsourced service)?
When a litigator prepares to sue you, the first place they look for a weakness is in your articles of Incorporation, charter, etc.
It doesn’t make sense to cheat on your first line of financial protection.
Next year, Godaddy is going to offer health consultation by email.
It will be professionally manned by EMTs. (Emergency Medical Tech.)
Right now, they are working on a patented procedure to attach to the email your x-ray amd MRI film.
Also, you will be happy to know that you will have to do your own “turn your head and cough” and “Bend over the table and relax”.
As litigious as people and companies are, especially when it comes to domains/internet based business, I don’t believe GoDaddy is the place to trust setting up an entity to protect your intangible assets. Spend the money and hire a professional organization or attorney that specializes in corporate formation.
I see there are a couple of questions about the product. Let me help clarify a few points:
After a state filing is completed, customers can elect to be classified as a Subchapter S Corporation through IRS Form 2553. We send along the form with the state documents. You can read about it here: http://help.godaddy.com/topic/776/article/5671
Go Daddy sends customers a notice regarding their registered agent service before the initial six month term expires. If they choose to continue the registered agent service, the renewal fee is $99 for the next 6 months. Incorporation services customers are not obligated to use the registered agent service.
Thanks,
Nick Fuller
GoDaddy.com
Communications Manager
I wouldn’t touch this with a pole. I tried to transfer my domain name to godaddy and they failed to disclose that my email would be held hostage for several days while they took their time doing the deed. I stopped the transfer when nothing was accomplished after about 4 days. Now they won’t refund the fee I paid up front. That is called unjust enrichment. Matbe I should find out how many others this happened to and consider class action. GoDaddy bears watching in my book. I sure as hell would not trust them to set up a business for me, particularly after learing how they run their own. Very difficult to communicate with if you have a problem. This clown is a reckless surfer riding a wave that will wipe him out sooner or later. Go to your state website and see who the registered agent is in your state. There is none posted with the secretary of state in Tennessee.
Doesn’t anyone think it’s funny that godaddy partered with the company corporation, which owns register.com ??? So godaddy gets clients for a domain competitor of theirs subsidiary, but gets paid from their competitor for affiliate sales. The real funny thing is that if you sign up for incorporation services with godaddy, they mark up the State filing fees, and you’ll get a Monster bill for the registered agent services. Yea it’s free for 6 months, but after that you’re looking at 230 bucks a year. The NV State fees are 400.00 if you file everything at once. In Nevada if you don’t file the initial list and business license within 30 days you’re brand new company will be defunct in 30 days. Lot’s of hidden prices and fees.
GoDaddy is using “black hat” ways to get you to register your corporation using them. Don’t trust them. They check every domain search you make using their app or website, they mark down any domain names they think has potential for greater income and show them as “purchased” by some SPAM domain buy services company, soon after your search is done. When you will want to purchase the domain, this SPAM company which is in fact GoDaddy (their argument is that the SPAM company has WHOIS protection and that is why the owner shows as GoDaddy) asks you to pay $400 or more to “push” the domain back to GoDaddy. It’s all a FRAUD, GoDaddy should be ashamed to become such a SCAM just to make extra profit. They are trying to make it look legit but not all people stupid!
If GoDaddy is that sneaky when is comes to web domain names, God knows what SCAMS will they pull on you if you trust them with your Incorporation process. GoDaddy is BAD. The SCAM they tried on my friend just proved it!